10 Best Life Insurance Companies In South Africa
10 Best Life Insurance Companies In South Africa

Many are unsure what to look at when considering life insurance, and where to find the right product for their individual needs. This article will discuss the top life insurance companies in South Africa, as well as outline how to select a product to fit specific and various needs.

Today, you need to have life insurance or business insurance to qualify for a number of loans. This shows how important life insurance is and getting one simply shows how responsible you are.

There are many different life insurance providers in South Africa, with varying offers available. Your premium and pay-out could be affected by the provider and policy you choose, which makes it important to know what your options are. We want to help you find the best life insurance policy for your needs and budget. You can do this by comparing life insurance quotes from different providers on our website.

This article will look at companies we consider to provide the best life insurance in South Africa with "Cheapest Quotes and Good Services".

What is the purpose of life insurance?

Life insurance primarily exists to insure against financial loss in case of death. Life insurance can help your family tremendously when you are no longer around to take care of them. It is a way to say I love you and I have your financial needs covered beyond my reach. Your family and those that you love dearly will have their financial needs taken care of.

But shopping for life insurance covers can be a daunting task considering the number of life insurance providers in South Africa. You will likely ask friends or search on Google to find a better life insurance solution for you and your family. We have done intensive research on life insurance policies in South Africa and have compiled the best 10 life insurance providers from the research.

What you primarily need to ask yourself is why you need life insurance in the first place. The reasons for life insurance are countless thus a number of insurance providers offer flexible life insurance covers. Therefore, these companies are able to cover the most common life insurance needs and sometimes those of the policy seeker’s preference.

What is the leading insurance company in South Africa?

Getting a definitive answer to this question is quite tricky. Typically, the performance of indemnity companies is assessed using various parameters by different authorities. Some of the factors to consider are reputation, reliability, and customer satisfaction.

The performance may also vary annually after each report is published. Nevertheless, every South African should know that the best indemnity is that which meets their personal needs.

What are the top 10 best life insurance companies in South Africa?

(Cheapest Quotes and Good Services)

1. Metropolitan Company

2. Old Mutual

3. FNB Life

4. 1Life Insurance

5. Sanlam Company

6. Momentum Life

7. Simply Life

8. Auto & General life insurance

9. ABSA Life

10. Discovery Life Company

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1. Metropolitan Company

Photo: sworld
Photo: sworld

Established in 1897, Metropolitan has grown and expanded to offer South Africans insurance solutions to equip them to make sound financial decisions. Metropolitan's life insurance packages include a funeral cover option that can be customized to cover your family (of up to 20 people) for up to between R50,000 and R80,000.

Metropolitan offers life insurance cover that is synonymous with affordability. Metropolitan Life Insurance is among the cheapest in South Africa and also caters to the poor. Not many life insurers cater for low-income earners but Metropolitan does this so well that you can get a cover of R100,000.00 for low premiums.

Metropolitan also cater to the rich who want to invest millions in their life. You can also add disability and/or critical illness cover to go with your life insurance. So if you need a combination of life products, Metropolitan will have you covered.

2. Old Mutual

Photo: companieshistory
Photo: companieshistory

Celebrating its 175th year, Old Mutual was South Africa’s first mutual life assurance society, established in Cape Town in 1845. Their aim is to help South Africans thrive through the achievement of their lifetime financial goals. The company is currently leading the Life insurance industry in the Customer Satisfaction Overall Index with a score of 80,3.

Perceived value – With a score of 81,7, Old mutual again lead against the industry average of 79.5.

Customer Loyalty – Old Mutual with a score of 70,3% is one of only three South African Life insurers with a percentage above the industry par of 68%. All three show an improvement in loyalty scores compared with 2018.

Treating Customers Fairly (TCF) – Old Mutual scores highly on TCF, with 83,3 compared to an industry par of 81,9.

3. FNB Life

Photo: moneymarketing
Photo: moneymarketing

FNB is a relatively new player in the country’s insurance arena, selling insurance products through its banking channels. FNB Life scores 82,2 in the Customer Satisfaction Overall Index, coming in as a market leader.

Perceived value – South African Customer Satisfaction Index (SA-csi) 2019 results showed FNB Life to have a perceived value score of 84,8, down from their market lead of 87,1 in 2018 and compared with the industry par of 79.9.

Complaints Incidence and Resolution – FNB’s complaint incidence score of 7.9% falls remarkably below the industry average of 8.2%. The industry par of 45.7 in complaint handling score is impressively surpassed with a score of 75.6. Globally a score of over 50/100 is considered world-class.

Customer Loyalty – FNB Life once again leads the industry pack with 73% loyal customers, topping the industry par of 68%. They are among three companies to show an improvement since 2018 when they were the only company to have managed an increased customer loyalty score up from 2017.

Treating Customers Fairly (TCF) – Maintaining their industry lead in yet another rating, FNB scores an impressive 85.6, down from 2018’s 87.6, again exceeding the industry par of 81.9.

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4. 1Life Insurance

Photo: 1life.co.za
Photo: 1life.co.za

1Life launched in March 2006 as South Africa’s first fully direct life insurer due to a need for consumers to save on their life insurance premiums.

1Life offers life insurance with unique benefits, ensuring your loved ones are covered against the loss of the breadwinner in your home. You can get coverage of up to R500,000 tax-free as a lump sum which can be used for day-to-day costs, like your children's school fees and medical bills. There is also the option to upgrade your cover to up to R3 million, ensuring your family's lifestyle doesn't suffer.

1Life offers the opportunity to save on your insurance premiums when you apply online. Other unique benefits include no paperwork or medical examinations, free financial advice, and an online financial needs analysis tool.

5. Sanlam Company

Photo: kapitalafrik
Photo: kapitalafrik

Sanlam is one of the country’s original life cover companies. Established in South Africa for South Africans over a century ago, Sanlam has become one of the world’s fifty largest internationally active insurance groups. The company is on par with the market average with a score of 78,6 in the Customer Satisfaction Overall Index.

Perceived value – The company maintains an average on par with the industry average of 79.5.

Complaints Incidence and Resolution – Sanlam’s complaint handling score of 33.8 is the lowest on the index score for 2018, way below the industry average of 45.7, and indicates a significant decline from the previous year’s score of 57.3.

Treating Customers Fairly (TCF) – Sanlam scored an above average of 82.4 for fair treatment of customers, comfortably above the industry par of 81.9.

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6. Momentum Life

Photo: youtube
Photo: youtube

With a proud claims payment history of consistently paying more than 99% of all death claims, Momentum Life Insurance provides reliable life insurance cover to safeguard you and your family from the financial uncertainty that comes with the death of a loved one. With proper planning, a Momentum Life Insurance pay-out will take care of your family and financial commitments when you no longer can, like paying for living expenses, settling debt like car or bond repayments, and providing for your children's education. With a lump sum pay-out from Momentum Life Insurance, you can secure the financial security of your loved ones in the event of you passing away. You can also include disability and critical illness cover to better suit your needs. If you also become a Momentum Multiply Premier member, you can get up to 60% discount on your Momentum Life Insurance premiums and qualify for additional discounts and rewards from a number of Multiply partners

Through advice, support, innovative products, and quality service, Momentum aims to help you reach your financial dreams and safeguard your future. Their life insurance coverage options include cover for disability, impairment, critical illness, income, and more.

Choose from their essential, extended, or comprehensive life insurance plans. With Momentum, you can enjoy the flexibility of tailoring benefits to suit your needs. Members of Momentum Multiply can also save up to 60% on their premiums along with cashback.

7. Simply Life

Photo: behance
Photo: behance

Simply is another relatively new kid on the block, describing themselves as a disruptive digital life company on a mission to secure the financial futures of millions of South Africans. The company aims to fill the “dire need” for affordable life insurance products in South Africa that are also easily understandable. Simply was founded by three partners wanting to use their collective and individual experiences and skills to achieve positive and meaningful results. The market, distribute, and service long-term insurance products, and their policies are underwritten by Old Mutual Alternative Risk Transfer Limited (OMART).

Simply Family offers easy online applications that require full disclosure in the form of answers to health questions, and do not require blood tests or medicals. Instant life cover and disability cover are available up to R2 million as well as funeral cover for individuals or families of up to R50,000 at a reasonable premium.

8. Auto & General life insurance

Photo: behance
Photo: behance

With more than 30 years of experience, we've established ourselves as a leader in South African insurance. In that time, they continually delivered insurance that our clients can rely on, through their superior products, benefits, and partnerships.

More than just a car insurance company, Auto & General offers life insurance, dread disease, and disability cover so you can support your family financially when you are no longer there. Auto & General Life insurance packages include a product named Expo-Sure, which offers support and assistance if you or a family member are exposed to HIV.

The Basic plan pays out between R50,000 and R200,000, while the Elevated plan pays out R200,000 to R10 Million. Both plans include a funeral benefit and the assurance that your cover amount will not decrease while your plan is active. Premiums are fixed for the first two years. All accidental death is immediately covered, but suicide is covered after two years.

9. ABSA Life

Photo: plettdirect
Photo: plettdirect

Instant Life is a new-generation insurance administrator that offers you high-quality insurance cover and products, whilst saving you money on your insurance costs.

Instant Life offers up to 30% lower monthly insurance payments and 20% cashback on your life insurance!

Instant Life policies are underwritten by Absa Life Limited - a member of the Absa Group, a leading South African financial services provider.

You can get a life cover from Absa in minutes. Absa offers fast life insurance solutions. With the Absa Ultimate Protector insurance, you won’t have to do any health checks and you get immediate cover. You can add disability and critical illness cover.

The life cover plan covers natural and accidental death, while the work disability plan offers cover in the event of you becoming disabled and no longer able to work. If you are diagnosed with cancer and need major intervention and treatment, the cancer life insurance cover option from Instant Life offers ideal cover.

10. Discovery Life Company

Photo: technadu
Photo: technadu

Discovery Insure provides a comprehensive portable possessions insurance plan that protects portable possessions from loss, theft, or damage. The insured portable possessions are covered anywhere in South Africa and are further covered worldwide.

As a result, when traveling, one does not need to take additional insurance coverage for already insured portable possessions. The cover is available in a variety of plans that provide flexibility in terms of the amount that one wishes to cover their portable possessions.

Clients can choose between three plans: the classic plan, the purple plan, and the essential plan. With these plans, almost any item can be covered. The essential plan provides coverage for items worth up to R1,500.00 per item or set. The classic plan covers items up to R10,000.00. The purple, on the other hand, provides coverage of up to R150,000.00 per item or set.

The following benefits come with Discovery Portable Possessions:

  • Clients can store documents such as proof of ownership and asset valuation in an online vault.
  • You can choose a flexible excess amount to suit your needs, or you can choose zero excess across all sections of the cover.
  • Every year, clients with a purple plan can upgrade to the latest Apple or Samsung phone.

Misconceptions about Life Insurance Among South Africans

It is common for South Africans to regard life insurance as expensive and difficult to acquire which has resulted in an uninsured population with a possible current gap of as much as R30 trillion. The reasons for this gap are threefold: lack of disposable income, lack of easy access to insurance products, and lack of insurance culture in the country.

What Questions Should You Ask?

It is important to find out what you need and all the available options so that you are sure you have the correct coverage for your personal needs.

Am I making the right choice?

Determining whether your life insurance company and/or broker fits your needs is of utmost importance before committing with a signature. South African financial services providers must be licensed by the Financial Services Boards (FSB). To check whether your insurance company or broker is compliant and registered, contact the FSB on 0800 110 443.

How do I determine the amount of life insurance I will need?

Two factors determine your needs in this case: firstly, the period calculated for you to settle your debts, and secondly, how much money your dependents will need to maintain the lifestyle they are used to after your death. Ask your insurance company whether their calculations are based on estimation or analysis as understanding the way in which your need is determined is very important.

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